Elders Limited delivered first-half underlying earnings of $76.6 million with revenues surging 31.8% year-on-year to $1.77 billion, accompanied by a maintained interim dividend of 18 cents per share, 100% franked. The result demonstrates solid operational performance despite executing significant strategic initiatives and navigating an inherently challenging agricultural environment.
The earnings growth significantly outpaced revenue expansion, indicating improved operational leverage and margin performance across the business. Statutory profit after tax reached $39.5 million, while operating cash flow nearly doubled to $67 million, up 115% year-on-year. This robust cash generation is critical for funding ongoing capital investment in systems modernisation while maintaining shareholder distributions through sustained, fully-franked dividends.
Much of the revenue acceleration stems from Delta Agribusiness, an acquisition completed in the prior financial year that is now contributing a full half-period of earnings. Elders is tracking early synergy benefits from the integration, with material gains weighted toward the second half of 2026 and full realisation expected over three years. Complementing this acquisition activity, the company advanced its Systems Modernisation programme, with Wave 3 focusing on livestock systems now operational and detailed design completed for the fourth and final wave.
Structurally, Elders implemented a new divisional model effective October 2025, reorganising operations around standalone divisions with dedicated management accountability and supported by shared corporate centres of excellence. Rural Services also transitioned from a state-based to a regional structure, comprising Northern, Southern and Western divisions. This refactoring is designed to improve accountability, enhance operational efficiency and position the company for sustainable future growth.
The Killara Feedlot divestment, announced in February, remains subject to Foreign Investment Review Board and Australian Competition and Consumer Commission approvals, with completion expected in the second half of 2026. The business is classified as held for sale and as a discontinued operation, with its contribution excluded from all underlying earnings figures to reflect core business performance.
The company successfully navigated an inherently challenging operating environment marked by elevated diesel costs and fertiliser supply disruption. Its back-to-back purchasing model and diversified supplier base proved effective in mitigating these headwinds. Safety performance improved markedly, with just one lost-time injury recorded and a Total Recordable Injury Frequency Rate of 3.5, down from 6.0 in the prior year. The underlying return on capital declined to 10.7% from 12.6%, a natural consequence of the capital-intensive cycle of modernisation and acquisition integration currently underway.
Investors should monitor the realisation of Delta synergies as they unfold in the second half and throughout the full integration period, alongside progress on regulatory approvals for the Killara sale and its subsequent completion. The delivery of the final wave of Systems Modernisation will also warrant close attention as a material milestone for the business. This announcement is price sensitive and has been flagged by the ASX as material.
View the full ASX announcement (PDF)
About Elders Limited (ASX: ELD)
Elders Limited is an Australian agribusiness company providing rural services, real estate, and insurance solutions to farmers and rural communities. The company operates through a network of 242 company-owned rural service outlets and approximately 380 independent wholesale partner stores across Australia. Headquartered in Adelaide, Elders also operates feed and processing services, including cattle feedlots, and employs approximately 2,900 people across its operations.
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